The bill amends Minnesota Statutes 2024, section 216B.164, to modify provisions related to net metering for qualifying facilities. Key changes include the definition of "capacity," which now specifies the production capability of a qualifying facility, and the introduction of a new provision that allows customers with qualifying facilities interconnected to public utilities to elect compensation for net input based on the average of retail energy rates. Additionally, the bill clarifies that customers with facilities below 40 kilowatts interconnected to cooperative electric associations or municipal utilities can receive kilowatt-hour credits on their energy bills, which must be compensated at a specified rate if canceled at the end of the calendar year.

Furthermore, the bill establishes that these provisions will only apply to qualifying facilities that begin operation after June 30, 2025, while those that started before this date will continue to be governed by the existing statutes. The effective date for the new provisions is set for July 1, 2025. Overall, the bill aims to enhance the framework for net metering, ensuring fair compensation for customers generating renewable energy or utilizing high-efficiency distributed generation sources.

Statutes affected:
Introduction: 216B.164
1st Engrossment: 216B.164